ECON 1050 Chapter Notes - Chapter 8: Behavioral Economics, Utility, Economic Surplus

33 views2 pages

Document Summary

Consumption choices - choices made by a buyer of goods and services. Limited to income and the prices of goods. Budget line - boundary between what is affordable and unaffordable. Points on or under this line is affordable. Points outside the this line are not affordable. Consumption possibilities change when income or prices change. Change in income shifts the budget line to the left/right. Change in prices (of two goods) changes the slope of the budget line. Utility - benefit or satisfaction a person gets from the consumption of goods and services. Total utility - total benefit that a person gets from the consumption of all the different goods and services. Marginal utility - change in total utility that results from a one-unit increase in the quantity of a good consumed. Positive marginal utility, the things that people enjoy and want tom have more of.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions